Commission is the percentage a channel keeps for each booking it brings the hotel. It is the cost of selling through an OTA and usually runs from 15 to 25 percent, more in niche channels. Cutting dependence on high commission channels is the whole point of the direct booking strategy.
Example A 200 euro booking through an OTA at 18 percent leaves the hotel 164 after commission.
An online travel agency is a channel that sells accommodation and travel online in exchange for a commission....
Marketing and CROCost per acquisition is the model where you only pay when the booking happens, like a commission. It shifts...
DistributionA direct booking is one the guest makes through the hotel's own channels, with no middleman. It saves the OTA...
DistributionIn the merchant model, the OTA charges the guest upfront and then pays the hotel its net rate, keeping the...
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